Type of Lending
90% LTV residential mortgage up to £2 million purchase price, utilising latest year’s accounts and projected income confirmed by a Chartered Accountant.
The Borrower
The borrower is a self-employed high earner who has experienced a significant increase in income in the latest financial year compared to previous years.
This growth trend has continued, with income evidence supported and verified by a Chartered Accountant, providing confidence in the sustainability of the borrower’s earnings trajectory.
The Challenge
The borrower required a lender who could take a forward-looking view of affordability, incorporating both latest-year performance and verified projected income.
Key considerations included:
- Assessment of projected income based on completed work and secured contracts
- Reliance on latest-year accounts rather than historic averaging
- Requirement for higher LTV than standard criteria.
The case required a flexible approach to affordability while maintaining responsible lending principles and confidence in long-term income sustainability.
The Solution
Hodge were able to assess the case based on the strength of the borrower’s overall financial position and supporting evidence.
Consideration was given to:
- Salary, dividends, and latest-year retained profits
- A Chartered Accountant confirmed projected income supporting continued earnings growth
- Overall covenant strength and demonstrated income trajectory.
The result
As a result, Hodge were able to offer:
- 90% LTV on a capital and interest basis
- Up to £2 million purchase price
- Application of enhanced affordability assessment outside standard criteria, supported by strong financial evidence.
This allowed the case to proceed on a flexible basis while maintaining robust underwriting principles.
Why Hodge
This case highlights how Hodge supports borrowers in achieving their holiday let ambitions through flexible criteria and practical, common-sense lending.
The Hodge Holiday Let mortgage is designed to help first-time landlords take the first step, and support landlords with small portfolios to maximise both rental income and personal enjoyment of their properties.
